After agreeing to keep oil production at 30 million barrels in November, the Organization of Petroleum Exporting Countries (OPEC) will meet once again in Vienna on June 5 at their ministers’ ordinary meeting. However, experts believe no change will be made to their previous decision in November.
If the 12 member oil cartel maintains its policy of unconstrained oil output for another six months, a new wave of low oil prices may be on the way as members such as Iraq and Iran look to ramp up exports.
Iranian oil is set to return to the market once Iran wins relief from Western sanctions. The sanctions are set to be settled within the upcoming months, when a deal on the country's nuclear program is finalised.
Iranian Oil Minister Bijan Zanganeh has assured other oil group members that they will have the opportunity to add as much as 1 million barrels per day (bpd) of supply once Western sanctions are eased.
According to investors, fluctuations in oil prices have occurred due to market participants reluctance to make changes in their business activity ahead of OPEC’s final decision.
Although experts believe the meeting will be a non-event, a surprise outcome could have an immense impact on oil markets.
So far, prices slumped by 5 percent over the previous two sessions as experts forecast persistence in the global oil glut.
On Friday Brent crude was down by 47 cents, trading at $61.56 per barrel while crude was down 45 cents at 57.55.